I just installed KDE 4.3 and it's looking good. Some features returned that I was missing. You can now once again display applications by name rather than description in the K-menu. You can now enable a nice kcontrol-like tree-view in the System Settings.
Some things are still missing though... like different wallpapers on different desktops. There are "Activities" which can have different wallpapers, but I can't for the life of me figure out how I'm supposed to be using them. I also lag and/or crash every time I Zoom Out in the cashew, possibly thanks to 3840x1200 screen resolution. I'm going to assume Activities are still a work-in-progress.
I was horrified to open Kopete and see that configuring the contact list window now uses the same completely broken configuration dialog that Amarok 2 uses for their playlist. Oh how I hope someone rethinks this.
There's a new Qt and Plasma theme in KDE 4.3 that looks pretty nice. Overall every release of KDE4 seems to become more stable, more polished, more eye-candy (if you want it).